Residential construction powering the economy

Official new data shows the value of residential construction has reached new highs, according to the Property Council of Australia.

The ABS construction data released today shows the value of residential construction work increased 11.7 per cent in the past 12 months – and reached $62.3 billion.

“Residential construction continues to surge and is delivering economic growth, jobs and investment,” said the Property Council’s Chief of Policy and Housing Glenn Byres.

“All states and territories bar the ACT recorded significant increases in the past 12 months to December 2015.

“There was good growth in the December quarter, with the value of residential construction increasing 2.8 per cent to more than $16 billion. The new data re-affirms the crucial role housing construction plays in our economy, particularly during the transitional phase underway.

“It also underlines that we can’t afford risky interventions in housing markets through changes to negative gearing, which helps 1.2 million Australians invest in property and build prosperity.

“We can’t afford to tinker with investment in housing markets given the jobs, activity and economic growth that home construction generates through the economy.”